Iron ore recovers some losses as mills rebuild inventories

Iron ore prices edged up slightly as Chinese steel mills built up inventories in preparation for a spring resumption.

Singapore iron ore futures rose 1.2% on Thursday, after falling earlier in the month as producers scaled back off-season operations during the winter.

Output from major mills fell to the lowest in about three months, data from the China Iron and Steel Association showed.

Iron ore prices have fallen about 30% this year, largely due to pessimistic demand from China and a weak construction sector there. Market sentiment remains fragile, despite government promises to do more to support the economy.